Affordable Health Care Act

There is a lot of information to absorb about the Affordable Health Care Act. Here are a few pieces of information that you may find helpful. Taxpayers with incomes that fall between 100% & 400% of the federal poverty level, and who do not receive their insurance at work, may be eligible for a tax credit towards their premiums if they purchase health insurance through the Exchange. The amount of the credit is estimated at the time of application process. It is based on AGI plus tax-exempt interest, nontaxable Social Security benefits, and tax-free foreign earned income. If you qualify for the credit, you can have it paid in advance to the insurance company to lower your premiums. However, if you choose this option, you must inform the IRS if circumstances change, such as increase in wages, family size, or new employment that provides health insurance. If you do not, your credit may be too large and you may owe money to the IRS at year end. Employers with 50 or more full time equivalent employees must report 2015 health insurance data for each full time employee to the IRS and the employee on a form 1095-C. It is a single page form with 3 parts. Only firms that are self-insured will be required to complete all 3 parts. Employers must also complete a 1094-C with the IRS listing total employees and full time employees. Both forms are available now in draft form.